Feds won't freeze Stokes' assets

GRAND RAPIDS -- Federal prosecutors today backed off their attempt to freeze the assets of Dr. Robert Stokes after the dermatologist denied allegations he was moving money in a possible attempt to protect it.

The U.S. Attorneys Office said Stokes -- convicted of health fraud in excess of $1.9 million -- agreed to provide the government with records to show he had not improperly disposed of assets and to explain the movement of money in his accounts, according to federal documents filed today.

In a three-month span beginning in April, Stokes withdrew $1 million from business accounts, decreased balances in profit-sharing and retail investment accounts, prosecutors alleged in their motion to freeze his assets.

Stokes promised not to sell off or use assets, except to pay for normal living, business and legal expenses, the document states.

He also did not object to the government filing a legal notice that it has an interest in his home on Reeds Lake in East Grand Rapids. The home is on the market for $7.7 million.

A federal jury convicted Stokes in April on 31 counts of improper billing to bilk insurance companies and Medicare. He is free on personal recognizance until his sentencing on Dec. 13. Stokes turned over his passport under a condition of his release.

The doctor could face up to $7.75 million in fines and $1.9 million in restitution. Federal health fraud carries up to 10 years in prison or up to 20 years if the fraud results in serious injury, including extreme physical pain and obvious disfigurement. It wasn't immediately clear whether prosecutors would seek the more serious punishment.